PALMOILMAGAZINE, JAKARTA — Indonesia’s Ministry of Energy and Mineral Resources (ESDM), through the Directorate General of New, Renewable Energy and Energy Conservation (EBTKE), has set the Market Index Price (HIP) for biodiesel under the biofuel (BBN) category at IDR 13,856 per liter plus transportation costs for February 2026.
The decision is stipulated in the Director General of EBTKE Decree No. B-294/EK.05/DJE/2026 dated February 1, 2026, concerning the February 2026 Biodiesel Market Index Price.
The letter explains that the implementation of the mandatory biodiesel program refers to Article 18 paragraph (3) of Presidential Regulation No. 132/2024 on Plantation Fund Management. Under this regulation, the government sets the crude palm oil (CPO) conversion value for biodiesel at US$85 per metric ton (MT).
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Director General of EBTKE, Eniya Listiani Dewi, stated in the decree that the February 2026 HIP for biodiesel is IDR 13,856 per liter plus transportation costs, effective from February 1, 2026.
The HIP calculation follows the provisions outlined in Ministerial Decree of ESDM No. 3.K/EK.05/DJE/2024 regarding the Market Index Price of biodiesel blended into diesel fuel.
According to the calculation appendix, the average CPO price from KPBN for the period December 25, 2025 to January 24, 2026 was recorded at IDR 14,496 per kilogram.
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The biodiesel HIP formula is determined as follows:
HIP = (Average KPBN CPO + US$85/ton) × 870 kg/m³ + Transportation Cost
The exchange rate applied in the conversion refers to the average middle rate of Bank Indonesia for the period December 25, 2025 to January 24, 2026, which stood at IDR 16,832 per US dollar.
The February 2026 biodiesel HIP is effective starting February 1, 2026. Transportation costs are capped at the maximum allowable rate for biodiesel blending into diesel fuel, in accordance with prevailing regulations. (P2)
